Mike Michalowicz's Blog, page 21

5 Ways Keeping it Simple Scales Small Businesses

 



We’ve been chatting about our immutable laws a lot lately, or as you may call them, core values. We have them displayed around the office since visualization is so empowering, and one of our immutable laws is simplicity.

As the saying goes, “less is more,” and this can certainly be true in the world of business. Keeping things simple can be a powerful tool for increasing efficiency and profit, and it’s an approach that is often overlooked in our increasingly complex and fast-paced world.

Simplicity is not about cutting corners or reducing quality. Rather, it’s about eliminating unnecessary complexity and focusing on what really matters. Here are some of the ways that keeping things simple can benefit your business:

Increased efficiency

Simplifying processes and procedures can make them easier to understand and follow, which can increase efficiency and productivity. When employees are not bogged down by unnecessary complexity, they can focus on the tasks that really matter, and get them done more quickly and effectively. This also reduces the risk of inviting burnout culture in your company.

Reduced costs

Complexity can be expensive. The more complex your systems and processes are, the more resources you will need to maintain them. Simplifying can help you reduce costs by eliminating unnecessary steps, reducing waste, and streamlining operations.

Improved customer experience

Customers appreciate simplicity. If your products or services are easy to understand and use, they are more likely to be well-received by your target audience. By simplifying your offerings, you can make them more accessible to a wider range of customers, which can help you grow your business.

Increased agility

Simplicity can help you stay agile and respond more quickly to changing market conditions. When you have streamlined processes in place, it’s easier to make adjustments and pivot as needed. This can be especially important in fast-moving industries where the ability to adapt quickly can be the difference between success and failure.

Greater focus

When you simplify your business, you can focus on what really matters: your core values, your mission, and your customers. By eliminating distractions and unnecessary complexity, you can stay focused on your goals and priorities, and make better decisions as a result.

By simplifying processes and procedures, reducing costs, improving the customer experience, increasing agility, and maintaining focus, you can build a stronger, more successful business. So, take some time to assess your operations and see where you can simplify, and start reaping the benefits today.

Wishing you health and wealth always.

-Mike

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Three Reasons to Establish Core Values in Your Business

As a small business owner, it’s easy to get caught up in the daily tasks of running it. However, having a set of core values can help guide your decision-making process and ensure that your business is operating in a way that aligns with your beliefs and principles, and what you want your business to stand for. Here are a few reasons why creating and applying core values is important:

Provides a framework for decision-making: When faced with tough decisions, having a core set of values can help you in making the right choice for your business, clients, and employees.Attract and retain customers: Customers are more likely to do business with companies that share their values. By having a clearly defined set of core values, you can attract customers who hold a similar vision.Builds strong company culture: Core values help define the culture of your business and provide a common language and purpose for your employees. This can help create a more cohesive and creative team.

Years ago when I was writing Profit First, I began thinking about what my immutable laws – or core values, are. I started by outlining them specifically for the purpose of guiding the implementation of the Profit First system. Quickly, I realized that we as a company could create our own immutable laws both personally and for our business – laws, and values that the whole team could get behind. Here they are: 

Purpose – Above all, we guide entrepreneurs to experience financial, emotional, and personal peace and security.Simplicity – Colin Powell said it best, “Great leaders are almost always great simplifiers, who can cut through argument, debate, and doubt to offer a solution everybody can understand.” I like to apply this and make all communication, service, you name it, as friction-free as possible to create an easy method for people to understand and apply right away.Embrace the whole human: We embrace the fullness of everyone by understanding each other personally and respecting your uniqueness and differences. We strive to be curious before making assumptions and we encourage the dreams of everyone we encounter.Kind communication: The sharp-tongued days of The Wolf of Wall Street are over. Millennials and Gen Z are taking a stand and putting their wellness before business. It highlights the need for a mindful approach to business beginning with kind communication. It’s a good place to start in creating a sustainable atmosphere for your team and customers alike. Embrace change: Change can be uncomfortable, but it’s necessary to grow. Especially now with the amount of new technology and economic uncertainty, we have to remember that we don’t necessarily have the option to have control at all times. Embrace the change – change is opportunity.

What are your core values? Drop them in the comments below. I can’t wait to see them!

Wishing you health and wealth always.

-Mike

Entrepreneurs need to stick together! I have created courses, workshops and mastermind groups to leverage the knowledge of entrepreneurs and share information to help you make the most impact in your small business. Check them out here.

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Your Mission Matters

 



Try to ignore the hair as I attempt to offer some deep thoughts.

I recorded this video while on the road after I had given multiple keynote speeches in various states in less than twenty-four hours. During that time, I had the privilege of meeting several attendees and learning about their entrepreneurial journeys and small business growth and scaling.

Inevitably, the conversations seemed to circle back to what our ideas of success are and the overall impact of what we do in our small businesses. It’s easy to lose sight of our mission. It’s also easy to forget how important small businesses are – to those you serve, and to the economy. You don’t have to own a huge corporation. In fact, I like small businesses better. There’s more accountability, better service, and better opportunities to build relationships.

Here are a few tips to strengthen your impact game:

Define your purpose and values: Every small business needs to have a clear purpose and set of values that guide its decision-making processes. This will help you stay focused on what’s important and create a strong brand identity that resonates with your target audience.Know your target audience: To make an impact, you need to know who your target audience is and what they care about. This will help you tailor your products or services to meet their needs and expectations.Build strong relationships: Building strong relationships with your customers, suppliers, and other stakeholders is crucial for the success of your business. Engage with your customers through social media, email newsletters, or any other means that suit your business.Offer exceptional customer service: Providing excellent customer service can differentiate you from your competitors and increase customer loyalty. Make sure to respond to customer queries and complaints promptly, and go above and beyond to exceed their expectations.Focus on innovation: Small businesses need to be innovative to stay competitive. Look for ways to improve your products or services, explore new markets, and experiment with new marketing strategies.Give back to your community: Getting involved in your local community can help you build strong relationships and increase your brand awareness. Consider sponsoring a local event, volunteering for a charity, or partnering with other businesses to support a common cause.

Ultimately, it’s not going to be how successful you are, but if you were of great impact. And I believe you will be.

When you’re challenged or losing steam, remind yourself why you started your business in the first place. What you do does matter. I am cheering you on from here. 

Wishing you health and wealth always.

-Mike

 

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What Are Your Priorities? Focusing on the Important Things in Life

 



What reminds you of the important things in your life?

For me, one of these reminders is this church. While very spiritual, I’m not an overly religious person. This church however holds decades of history for me. I attended here with my family when I was younger, had my wedding here and recently had my father’s funeral here too. This church is also on the road I drive every day to and from work, so I am constantly reminded about the important moments in my life, and what really matters to me.

It’s not to say that my business isn’t important, but I do think everything we do should stem from our innermost understanding of what’s important in life.

Wishing you health and wealth in all aspects of your life.

-Mike

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Tax Aversion Tips for Your Business

 



There are over Two Thousand Five Hundred pages in the tax code for the United States. Here’s the thing, only a few pages are about paying your taxes. The rest of the code is full of ways to reduce your tax consequences.

The tools are out there to help you legally reduce your tax consequences. I’m not suggesting the government is on your side, but there are opportunities for you to take advantage of.

There are several legal ways to reduce taxes in the United States, including:

Contributing to tax-advantaged retirement accounts: Contributions to qualified retirement accounts such as 401(k), IRA, or HSA are tax-deductible, which means that you can reduce your taxable income and lower your tax liability.Taking advantage of tax credits: Tax credits such as the Child Tax Credit, Earned Income Tax Credit, or Education Tax Credit can reduce your tax bill dollar for dollar.Maximizing itemized deductions: Itemizing deductions, such as charitable contributions, state and local taxes, and mortgage interest, can reduce your taxable income and lower your tax liability.Timing income and expenses: Shifting income or expenses to different tax years can help you reduce your tax liability. For example, if you expect to be in a lower tax bracket next year, you can defer income until then.Investing in tax-advantaged accounts: Investing in tax-efficient investments such as municipal bonds, which offer tax-free income, or using a tax-efficient investment strategy can reduce your tax liability.

It is important to note that tax laws and regulations change frequently, and the tax strategies that work for one individual may not be appropriate for another. It is always best to consult with a qualified tax professional to determine the most appropriate tax strategies for your specific financial situation.

I hope this helps!  You’ve got this!

-Mike

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The Future You

 



Here’s a quick question to contemplate: How are you serving your future self?  

As much as I like to stay present, I also realize that the decisions I make today will have a direct impact on my tomorrow, and the tomorrow of those around me.

Serving your future self involves making decisions and taking actions today that will benefit you in the future. I wanted to share a few things I do to serve my future self, so I can continue to serve others and feel fulfilled:

Old Man Mike. I found this app that ages you. I know, not everyone wants to see that! However, when I saw myself as an older man, it made me think about where in life that guy was, what he’d accomplished and how he made others feel. This one small reminder has a big impact on my knee-jerk decisions throughout the day.Setting goals. I know, shocking. I am the goal setter of all goal setters, and I have accountability systems in place to continuously work on those goals. When setting your own goals, make a PACT with yourself. Ask yourself if your goal is Purposeful, Actionable, Continuous and Trackable. Plan ahead. Make a plan for how you will achieve your PACT, and break it down into smaller manageable steps. This will help you stay on track and avoid feeling overwhelmed. Invest in yourself. Investing time and resources in activities that help you improve your knowledge, skills and health will propel you in your journey. This could include reading, attending masterminds or keynotes, or plain old work/life balance that creates a more productive you.Get that cash flow under control. You’ll be better prepared for future expenses, emergencies and retirement, and you can avoid unnecessary debt later. Relationships matter. As introverted as some are, it’s still important to socialize. Really, there are scientific studies. I will admit that for a few years I was putting relationships with friends on the back burner, but I saw how reenergized I was after speaking with or spending time with a friend, so now I carve out at least one time a week to see close friends. We are each other’s biggest supporters, and we all need that.

Do you already have a system that you use to serve you in your future and will create your legacy? I’d love to hear what it is, so leave it in the comments. 

Wishing you health and wealth, from now into your old, old age.

-Mike

 

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An Easy Business Strategy to Change Your Life

When I first took my act on the road and began to perform keynote speeches, I had the privilege of meeting hundreds, no thousands, of small business owners. One of the questions I kept hearing was, “Mike, can you give me a few easy steps that I can implement now to grow my business?”

These conversations inspired me to create a new system for growing and scaling businesses, and The Pumpkin Plan was born. (If that sounds as though it happened overnight, it didn’t, but the system can be implemented in that time!)

As you know I have partners who have taken some of my systems and created businesses out of them and one of those superstars is Donna Leyens, of Pumpkin Plan My Biz. When I asked if she had any testimonials to share, she immediately sent me to this blog about the transformation her client, Christeen Era, experienced. I’d like for you to glance at the below so you can get any questions you have answered about The Pumpkin Plan and apply it to your business today. 

The Business Strategy that Changes Lives

May 9, 2022/in Business Growth /by Donna Leyens

Successful but Miserable

Christeen Era was a successful business owner with a thriving business. And she was miserable. She had built her business from scratch. But there were elements of the business that she just hated. She had clients that made her life miserable on a regular basis. Sometimes she didn’t even want to answer the phones. She had employee headaches. She had no control over her time. Eventually, she realized that this was not how she wanted to live her life and something had to change. So she took that business apart and started over with a new business strategy.

As Christeen was building her new business and trying to stay on course, she discovered The Pumpkin Plan: A Simple Strategy to Grow and Extraordinary Business in Any Field, by Mike Michalowicz, and the light bulb went on for her.

The Pumpkin Plan is based on the idea that when you are operating in your Business Sweet Spot, business growth stops being hard.

The Sweet Spot is the place where 3 key elements of your business align: your Top Clients, your Unique Offering and your Systems and Processes.

When you have an identifiable Top Client Niche, a Unique Offering that your Top Clients want and need, and the Systems and Processes to deliver your Unique Offering to your Top Clients efficiently, effectively and profitably, you are in your Sweet Spot.

As Christeen read the book, she was able to identify the reasons why she so was unhappy in her first business and make sure that she didn’t make the same mistakes again. The last time she was not operating in her Sweet Spot. This time would be different.

Life Changing Transformation

Christeen was so impressed with the power of the The Pumpkin Plan method, that she decided to become a Certified Pumpkin Plan Strategist so that she could help her clients undergo the life changing transformation that she was experiencing.

(Go HERE to watch a video of Christeen talking about the impact that becoming a Pumpkin Plan Strategist has had on her business).

For Christeen, that transformation started with the Mission, Vision,  and Purpose exercises from the Pumpkin Plan Program. Getting really clear on her long term vision and her business mission, as well as her core values, made a huge difference to the direction of the business. Putting these thoughts on paper enabled her to see how her business vision could enable her vision for her life.

She saw that she could have a profitable company, she could buy the house of her dreams, she could go on vacations with her family, and give herself space to not have to work around the clock to achieve her financial goals. According to Christeen: “I don’t think we would even be here where we’re at now, if we hadn’t applied the mission, vision and purpose exercises the way that we did.”

The Power of Niching

Christeen’s business, Core Growth Strategies, is a high-end accounting and business growth consulting company. Initially, they were serving a diverse group of small businesses. After doing the Top Client Assessment from the Pumpkin Plan, Christeen identified a niche client base – the Lawn Care and Landscape Industry. She recognized that she had found a group of business owners that really needed her help, and she felt uniquely qualified to serve.

As she slowly started getting rid of the clients who were not ideal for her company, everything started operating more smoothly, efficiently and profitably.

Christeen saw such a big opportunity to go all-in serving her client niche that she started a separate business with a partner, Green Profit Academy, specifically focused on delivering profitable growth strategies to the Lawn Care industry. Because she knows the industry so well, and she knows their issues and challenges so well, she has been able to take a deep dive into finding solutions that are specific to their industry. She has created tools and processes, and customized the Pumpkin Plan and Profit First tools to meet the specific needs of her client niche.

Specialization has had many benefits for Christeen’s two businesses. Because they are serving a specific niche, she has been able to streamline her operations, making it easier to run her businesses.

Christeen’s team members know exactly what her clients need, and they have the systems to support that. Her employees don’t have to learn about or ask questions about many different types of businesses, because they are focused on serving one type of business.

Christeen and her companies have become known as the experts, the go-to accounting and coaching firms in the Lawn Care industry. The word has gotten out, and prospective clients are finding her. Her marketing has become highly streamlined and effective, as she can speak to the specific needs of her clients’ industry. The return on her marketing investment is high, creating higher profits in her business.

The Biggest Transformation

The biggest transformation for Christeen, however, has been how she feels about her business. She and her team members are really passionate about what they do. They know that they are making a real difference in the lives of their clients and that is very rewarding for them. Thanks to The Pumpkin Plan strategy, Christeen is bringing in the income that supports her lifestyle, she has control of her time, she is doing work she is passionate about, and she has fallen back in love with her business!

Are you passionate about supporting small businesses to grow and thrive? Become a Certified Pumpkin Plan Strategist

Would you like help and guidance to reach your business goals? Hire a Pumpkin Plan Strategist

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6 Steps to Avoid Business Burnout



Since April is Stress Awareness Month, it’s a great time to remind each other that we humans are – well, human. So here’s my big question to you: Are you putting your well-being before your business? 

Either way, I want you to repeat this mantra: “Me before business.”

Oh, I can hear your responses now. “Groan…But I am my business, Mike!” I get it, but you know what else? You can’t run it long-term if you’re not at your best. 

With all of the chat about burnout culture, it’s important to ensure you’re minding not just your business, but your mental and physical health. So often business owners put off their own needs, attending to business tasks first. (Guilty!) But may I offer you some friendly advice from my own experience? Focus on your well-being first. 

Once upon a time, I was a workaholic, and I don’t take pride in that title. From the moment I woke up to the moment I went to bed, which was way later than it should have been, I juggled numerous tasks. I felt accomplished at the end of the day, sure. But I also felt wired, stressed out, anxious, physically exhausted and had brain fog all at the same time. 

Then my wife and I began creating exercise routines in the morning and still today, exercise is the first thing I do. I bet you’ve heard the story I’ve told about how I leave my sneakers on the toilet so that before I do anything in the morning I put those on. I know, for some that’s too much information – but it’s good information! 

If you’re familiar with my content you know that research shows that establishing behavior intercepts are the biggest factor in naturally developing habits. My habit, no, ritual, of a healthy activity that clears my mental blocks, gets my blood pumping and nurtures my well-being all at once. Because I carve out that time, the rest of my day falls into place seamlessly, and my output is far more efficient, clear and effective.

Now, I realize I’m the Profit First guy, and some of this is obvious to you, but it’s my mission to support you and give you all of the resources I can to help you maintain a sustainable business. The first step in that process is prioritizing your health so you can then maintain everything else around you.

Get that body moving. You don’t have to run a marathon, even a stretch session will clear up your physical and mental energy.Practice mindfulness and stay present. Meditation or breathing exercises have been instrumental for me in calming my mind and reducing stress levels. And, it helps focus attention on the present moment. When you’re present, it keeps your attention on your reality at the moment and reduces anxiety. My wife and I began transcendental meditation last year and the benefits have been phenomenal. Don’t worry if you’ve never meditated before, are worried about being still, or not thinking about things while meditating. It’s a practice that develops over time. Start with five minutes a day and increase that each week or so. I promise it will ground you in a way that makes the world, and your business easier to navigate.Time Management. Prioritizing tasks and setting clear goals can help manage stress levels by breaking down complex projects into smaller, manageable steps. Delegation. Of course, right? Shameless Clockwork plug? Not intentionally. When you do everything yourself you invite the opportunity for burnout and stress. Create those systems in your business so you can share your workload with your trusted team members.Seek support. Therapy rocks. So do mastermind groups and your social circles. Talking with someone about your struggles, challenges and celebrations alike make you feel seen, heard and supported.Set boundaries to create work/life balance. Are you checking your phone in bed? Cut it out. Entrepreneurs and small business owners can easily become consumed by work. Balance isn’t eating at your desk, working out at the company gym or taking a quick call during your son’s track meet (again, guilty). Set a time each day for lunch. Set a hard stop time for the end of your work day. Make time for your loved ones and hobbies. 

Most of all, don’t sacrifice yourself for your business. Cultivate a healthy you that adds energy to your business. Love your life.

You’re welcome. 

Wishing you health and wealth always.

Mike

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Relay is becoming the official banking platform for Profit First

Today, I’m thrilled to announce that Relay is becoming the official banking platform for users of Profit First.

We’re joining forces because Relay is deeply committed to keeping business owners — and that aligns with our mission to eliminate entrepreneurial poverty. It’s best to hear the details from the horse’s mouth, so I sat down with Relay’s team to discuss the partnership and what it means for business owners. You can watch that conversation here.

I will also be co-hosting a live virtual event with Relay’s team on April 4th, 2023. More on that below — but in the meantime, I recommend you sign up here.

For years, readers have told me that the #1 barrier to implementing the Profit First system was their bank. Most banks are inflexible, don’t understand Profit First, charge high account fees, and demand you maintain a large minimum balance just to hold an account. Sadly, almost none of them have been willing to evolve for the sake of your success.

That all changes today thanks to Relay. Relay is an online banking and money management platform that runs Profit First out of the box. It’s elevated the standard for business banking, and I can confidently say that Relay and Profit First are now the two matching tools you need to ensure permanent profitability in your business. Here’s why:

Relay lets you open up to 20 individual business checking accounts (i.e., real accounts — not just virtual envelopes) per business entity, and manage all of them from one easy dashboard.Each checking account you open can have its own unique nickname (like “Profit – 15%”) to help you keep track of allocations.You can allocate money to the right accounts, in the right percentages, in just a few clicks. Transfer money from your Income account to your other accounts all at once and have the math done for you.Forget about fees. You can bank with Relay with no monthly fees, no minimum balance requirements, and no overdraft fees. This alone is enough reason to use Relay for many businesses.Opening an account with Relay is a 100% online process. So you don’t have to take hours to visit a branch.With Relay, you get a customer support team that *gets* Profit First. In fact, Relay has become a Profit First Certified firm as part of this partnership.

But they’re not stopping here. Something NEW that Relay is launching as part of this partnership are smart transfer rules. With this feature, you can automatically allocate your income to different checking accounts (i.e., Profit, Taxes, Owner’s Comp and Operating Expenses) without needing to lift a finger.

Once you set up these smart transfer rules, they keep you on track with Profit First allocations no matter what.

You can learn more about how to use Relay for Profit First here.

Learn more here

I’m so excited about how this partnership will transform the profitability and clarity for so many business owners.

To celebrate the launch, I’ll be co-hosting a live virtual event with Relay’s team on April 4th, 2023, at 3:30 p.m. ET / 12:30 p.m. PT. We’ll be covering everything you need to know about the partnership, Relay’s platform, and how you can get the most out of it. Spaces are limited, so register ahead of time.

Save your spot

We’ll cover:

How to get cash flow clarity and profitability with Relay and Profit First

How to implement Profit First with Relay in 3 simple steps

Demo of how to get the most out of Relay’s smart transfer rule built for Profit First

Ways to get practical resources for managing cash flow in your business

T-Shirt and book giveaway for those that register

Live Q&A to get your questions answered

 

I look forward to seeing you there!

-Mike

 

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What the Heck is Profit First?

“What the heck is Profit First?”

I heard this question a couple of years ago from across the room where I was speaking. An entrepreneur was explaining the system to a friend, and the concept of taking profit first before all else was confusing. After all, that goes against everything accountants learned, right? But, is there a better way to manage the finances of your business?

(Hint, the answer is yes.)

Profit First is the book that introduced cash management systems that helps increase your profit by changing the way you manage your cash flow. The system is based on the principle that profits should be allocated first, rather than being an afterthought or a leftover.

Here are some ways in which Profit First will increase your profit:

Improving cash flow management: By allocating funds to different accounts based on their intended use, Profit First helps you stay on top of your cash flow and avoid overspending. This helps ensure that bills, taxes and expenses are always paid on time, while also allowing for a more accurate projection of future expenses and profits. Encouraging frugality and discipline: By setting aside a specific percentage of revenue for profits, you’ll be forced to operate within your means and find ways to reduce expenses. This leads to better habits around cash management and an increased focus on revenue generation.Facilitating informed decision-making: By tracking revenue and expenses in real-time and making regular transfers between accounts, business owners using Profit First have a better understanding of their financial health and can make more informed decisions about investments, hiring, and other business activities.

Overall, Profit First helps you increase your profits by focusing on cash flow management, encouraging discipline and frugality, and facilitating informed decision-making. By prioritizing profits and building a strong financial foundation, you will achieve long-term success and sustainability. You can take the first step by reading Profit First and checking out the resources here.

Wishing you health and wealth.

-Mike

PS – Want the FAQs? Check out the free, downloadable resources for all of the books, including Profit First, here. 

PSS – Peer support has been an essential aspect of my entrepreneurship journey, so I created a mastermind group so you can benefit too. I’m hosting a One Day Mastermind this spring. Learn more here and make your own journey easier!

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